The UAE residential property market is recovering as people shift to larger homes with outdoor facilities due to remote working and online learning. Residency permits for retirees and remote workers have increased market morale.
The real estate business perceives rising interest rates, dropping GDP, and sinking transaction flow as cyclical headwinds. This year’s “Emerging Trends” real estate professionals are cautiously optimistic. Their plan: Ride out the slump and reposition their firms for significant growth and returns. So many industry members are willing to look past cyclical obstacles. In 10 years, prices that appear outrageous today will seem like a bargain, said a real estate consultant.
When purchase prices are competitive and capital growth is significant, primary or, new sales are the first unit a developer sells to an investor or buyer. The secondary market includes houses to be rented or employed by succeeding owners. Secondary markets account for most property sales.
Dubai is no exception. According to a survey by Arabian Business, the new selling market generated AED 9.16 billion in the second quarter of 2021, while the resale market generated AED 27.66 billion.
Growing confidence of foreign buyers in UAE real estate is One of the main goals of the to encourage investment. Based on the great results in the Dubai real estate market, this goal has been met so far.
The first step was to reassure expats and investors about the pandemic since Dubai was one of the first places to speed up vaccinations for its residents. Currently, the UAE has the highest vaccination rate in the world, with 91% of residents getting their first vaccine dose and 80% getting their second.
On another level, Expo Dubai, which began on October 1, 2021, has put Dubai back on the map of the world’s most popular places to visit. In the first month alone, more than 2.3 million people came to see the event.
Also, the government has started several new programmes to get expats to invest in Dubai’s real estate market and to move here and live. Some market-boosting steps include giving people over 50 a five-year retirement visa, a one-year remote work visa, and a 10-year golden residency visa for certain jobs.
But the legal protection of foreign investments that guarantees the rights of all parties is the most interesting thing for people who want to buy property in Dubai. Digitalized operations are also a plus because any resident or investor can use high-end technologies to manage their real estate property, such as selling or buying a home or paying fees, anywhere in the world. Also, you only pay property tax once when you buy a residential property.
Lastly, the high return on investment is one of the best things about investing in Dubai real estate for many Gulf and Middle Eastern expatriates.
The high demand for bigger and more expensive homes is one of the most interesting new real estate trends in the Dubai market. Several things, especially the lockdown and the ability to work from home, have changed where people want to live and relax. People now want to live near the water or in larger villas and townhouses with a yard and a swimming pool.
This is mostly because more people work from home and families stay home more. Also, the most desirable homes are often on the city’s outskirts, where prices are lower. For example, you can get a bigger space in Dubailand, Mudon, or Dubai South for the same price as a smaller home in Dubai. Along with the growth of eCommerce, the demand for warehouses and storage spaces is growing in Dubai. This is one of the new trends in the real estate market there.
A survey of 11 real estate experts in August showed that house prices in Dubai were expected to rise at a slow rate of 3.0% this year and 2.5% in 2023. Three months ago, 1.1% and 2.8% were expected. But Dubai’s housing market is still cheap compared to other markets worldwide. This is because there are so many places to live.
According to Gulf Business, prices for villas and townhouses will continue to increase in 2023 because of rising demand. However, low-interest rates and competitive mortgage products will help buyers, especially those who want to live in the property.
The government has set up a new Real Estate Planning Committee with the goal of taking steps to improve the balance between supply and demand. A full strategic plan will be made for all big real estate projects in Dubai over the next 10 years. These plans are expected to make more people want to live in the country.